The low rate of inflation in the 1990s is probably due to

A) the rise of discount stores that minimize distribution costs,thereby holding prices down.
B) the fact that businesses have become meaner and leaner.
C) the advent of E-commerce that increased competition and drove prices down.
D) the flood of imported goods that increased competition with American-made goods.
E) All of the choices are correct.

Question

Gabrielle Martinez · Accepted Answer

Final Answer : E, Explanation :  All of the choices are correct, as each factor likely contributed to the low rate of inflation in the 1990s. Discount stores like Walmart and Target minimized distribution costs, which helped to hold prices down. Many businesses also became more efficient in the 1990s, reducing their costs and potentially reducing price pressures. E-commerce increased competition and drove prices down further, as did imported goods. Overall, the combination of these factors likely contributed to the low rate of inflation in the 1990s.

Definitions

Learning Objectives

Learning Objectives

Related questions